Dr. John-Mark Staude reports
RIVERSIDE SIGNS DEFINITIVE OPTION AGREEMENT AND RECEIVES CASH AND SHARES FROM PARTNER
Riverside Resources Inc. partner Sinaloa Resources Inc. entered into a definitive agreement signed on Jan. 30, 2019, that begins with an initial option to acquire a 70-per-cent interest in the La Silla project. Sinaloa Resources has issued Riverside one million common shares and now paid $60,000 total in cash. Riverside and Sinaloa Resources expect the commencement of a first-phase $300,000 exploration program in the coming months, as per the agreement (see attached table).
Under the terms of the agreement, the initial option to earn 70 per cent is predicated upon the issuance by Sinaloa Resources of shares at a value of $1-million, $60,000 in cash payments and exploration work totalling $2-million over 36 months (see attached table).
Riverside's president and chief executive officer, Dr. John-Mark Staude, stated:
"We are pleased to move forward with Sinaloa Resources in the La Silla precious metal district in Sinaloa, Mexico. The last exploration and drilling program at La Silla intersected high grades and we look forward to operating and collaborating with our partner to build on historical success in this district."
Riverside has completed extensive generative prospecting work at the project including rock chip and grab samples up to 19.9 grams per tonne gold and 200 g/t silver. Riverside's previous work programs focused on extending known areas of mineralization, such as the Ciruelo and El Roble veins (see press release June 19, 2018). Further property-wide exploration also successfully identified new showings, structures and historical abandoned workings as part of the company's generative work aimed at developing additional exploration target areas to increase the pipeline of new discovery targets at La Silla.
Sinaloa Resources is currently a privately held company and intends to pursue a listing transaction on either the TSX Venture Exchange or the Canadian Securities Exchange within 12 months of execution of the definitive agreement. The agreement also includes several provisions that protect Riverside in the event of early termination or a late listing transaction.
INITIAL OPTION -- SINALOA RESOURCES TO ACQUIRE 70-PER-CENT INTEREST IN LA SILLA Due datesCash paymentsValue of shares to be issuedExploration expendituresUpon execution of the LOI$25,000 NilUpon execution of the definitive agreement $35,000$100,00012 months from the date of the definitive agreement $100,000$300,00024 months from the date of the definitive agreement $100,000$700,00036 months from the date of the definitive agreement $700,000$1-millionTotal$60,000$1-million$2-million
Additional agreement details
To earn an additional 30 per cent, Sinaloa Resources must incur a further $1-million in exploration work and issue Riverside additional Sinaloa Resources shares at a value of $500,000. Riverside will retain a 3-per-cent net smelter return (NSR) on the project should Sinaloa Resources complete 100-per-cent earn-in, or Riverside's interest dilutes to less than 10 per cent.
Qualified person and quality assurance/quality control
The scientific and technical data contained in this news release pertaining to the La Silla project were reviewed and approved by Freeman Smith, PGeo, a non-independent qualified person to Riverside Resources, who is responsible for ensuring that the geologic information provided in this news release is accurate and who acts as a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.
About Riverside Resources Inc.
Riverside is an exploration company driven by value generation and discovery. Riverside has extensive experience and knowledge operating in Mexico and has leveraged its large database to generate a portfolio of prospective mineral properties. In addition to Riverside's own exploration spending, the company also strives to diversify risk by securing joint venture and spinout partnerships to advance multiple assets simultaneously and create more chances for discovery.
We seek Safe Harbor.
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